Market Watch: Wall Street awaits Nvidia’s quarterly results to maintain market confidence, while Apple is reportedly laying off staff and bitcoin has fallen through a key resistance level..
Nvidia’s quarterly results
Nvidia’s quarterly results could determine market sentiment, as its market value has soared to $3.2 trillion due to its dominance in AI computing hardware. The chipmaker’s earnings, due after the U.S. close, could move the entire market.
Analysts predict a 9.8% swing in shares, potentially resulting in over $300 billion, the largest expected earnings move for any company in history. Nvidia’s revenue increased by 112% in Q2, but adjusted gross margin dropped by over 3 percentage points.
Apple Job Cuts
Apple has cut about 100 jobs in its digital services group following the departure of its long-standing CFO, Luca Maestri. The largest cuts were in teams working on Apple’s bookstore services. This is a rare instance of job cuts by the company, which tends to retain staff amid a growing wave of layoffs across major tech peers.
Analysts at Wedbush predict that Apple could sell around 240 million iPhone units in FY25 as this AI-driven upgrade cycle takes hold. China remains the linchpin of Apple’s growth, with iPhone 16 set to launch in fiscal 2025.
Bitcoin feeling unloved
Bitcoin fell 6.7% to $58,806.0, a 6.3% drop from the prior session, and below the $60,000 level. Whale Alert reported 30,000 Bitcoin tokens transferred from a cold wallet to Binance. A large sale of Bitcoin on an exchange suggests a cooling of investor optimism over spot Bitcoin exchange-traded funds.
The recent weakness could be political, as the White House race is tighter, with Trump as the pro-crypto candidate and Biden’s administration focusing on regulatory views.
Economic Calendar
- 01:15 AM Fed’s Waller Speech
- 07:00 AM MBA Mortgage Applications
- 10:30 AM EIA Petroleum Status Report
- 11:00 AM Survey of Business Uncertainty
- 11:30 AM 2-Year FRN Note Auction
- 01:00 PM 5-Year Note Auction
- 02:00 PM Treasury Buyback Results
- 06:00 PM Fed’s Bostic Speech
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Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow, the benchmark and tech-heavytouched record marks last week.
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow,
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
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MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.
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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.